Early Executors' Traits:Profile: Some entrepreneurs are college drop outs, whiz kids, early salesman…Sectors: New Industry Sectors such as Software, Web, Computers, Biotech, Investing, EntertainmentIndustry Trait: High Risk & High Reward Industries,Product oriented,Winner takes allFunding: Angel Funding and later Venture Capital FundingWealth: Their average lifetime wealth is more than that of Late bloomersLate Bloomers'TraitsProfile: Corporate Executives, Bureaucrats, Professors, Inventors turned entrepreneursSectors: Traditional Sectors such as Retail, Food, Hotel, Publishing, Education, Advertising, Management Consulting, IT Services, BPO, Media, Airlines, Pharma, Beauty, Oil and Gas, Banking, Insurance, Logistics, Real Estate,Industry Trait: Process and Service Oriented, Relentless Execution, Manpower or Franchise intensiveFunding: Personal Funds and later Private EquityWealth: Average lifetime wealth of Late Bloomers is less than that of Early Executers

Surprisingly tycoons from Capital intensive industries such as Telecom (my industry), Steel, and Cements are missing from above first generation entrepreneurs list. Two possible reasons apart from my biased sampling could be
1) Most of the successful entrepreneurs in these sectors are second generation entrepreneurs
2) Most of the big companies in capital intensive are still government controlled enterprises.

So Age is no bar for Entrepreneurship. One can start at any age and lay foundation for a billion dollar enterprise. It’s always possible and it’s never late!!

The book is about an idea that is converted into a billion dollar business, about a belief that an idea can be implemented and about formulating right strategy for converting an idea into a business. The plot harmoniously weaves around complex business fundamentals, required to set up, run and make a business successful, presented in lucid, easy to understand style. The novel is about implementation, about challenges that can be overcome, about success, about friendship, about passion, and about fun above all! All in all a hilarious and inspiring story on entrepreneurship and idea possibilities!

The book has got good and encouraging reviews from readers so far.

Dr. T. R. Madanmohan ( Ex Associate Professor IIM Bangalore ) says, “Reading ‘Who is that lady?’ brought vividly the moments of celebration and anguish of "identification of business opportunity", validation and construction of business model and implementation. A wonderful, written as a novel, that should be read by all current and future business leaders. Wish the book was available around 2005 for my class of Managing Technology led business at IIM Bangalore. I am sure the class would have devoured and gained much more from the book.”

Sathish Sheshadri ( Management Consultant at IBM) says, “India is renowned for using stories to convey great life lessons. Who is that Lady could well become such a legendary story on the topic of innovation and entrepreneurship. Everyone from students to CEOs will find a lot to reflect on, from the pearls of wisdom that the authors have shared through the protagonist, Pratik.”

Major Pooja Gupta says, “The book makes you think... if there is anything in this world which is impossible.”

Subir Dhar (Principal Consultant at Infosys) says, “This book will inspire India’s restless youth to take up entrepreneurship.”

Neerav Nimesh (Entrepreneur) says, “An entertaining book, which is not only a good novel but also a very good book on management. The author has been able to explain the fundamentals of every aspect of business whether marketing, planning, strategy, organizational structure, H.R., lines of communication, team work, goal setting etc and has done so without appearing to dispense "gyan".

Monday, March 15, 2010

How the Telecom Operator landscape will shape in future? Two trends which might unfold

Global and Regional Consolidation (M&A):

Already local , regional and Global M&A is under process but there is still more room for M&A. There are more than 700 Telecom Operators in the world and finally these 700 operators after consolidation might narrow down into two digits.

Who will be the buyers and who will be the sellers in Global M&A game?

Which is the “most global” Telecom Operator?

I thought “most global” Telecom Operator would be Vodafone. When I looked at the data, surprisingly, Orange was present in more countries than Vodafone as direct Operating Entity.

Five Operators can be called truly global and their Globalization Strategy is working so far – Orange, Vodafone, Telefonica, T Mobile, America Movil

Operators in Left Top Quadrant:

They are present in many countries but their revenue lag behind global operators. They will most likely be acquisition targets –

Not surprisingly, MTN and Zain belong to this group and are looking for buyers…

Qtel has expressed vision of being among Top 20 players globally …So Qtel might consolidate either with Orascom , Etisilat or MENA assets of Zain.

Among Telenor and Telia Sonera , some consolidation might take place and Telia Sonera might be the likely winner with some interesting combinations

Market Buzz is that Telenor is already looking to divest its stake in Telenor Pakistan to China Mobile.

Telia Sonera has investments in Turkcell and Megafon . It may increase its stake to convert into operating control.

Telenor has stake in Vimpelcom, Either Telenor may acquire Vimpelcom or Vimpelcom may acquire Telenor or third entity ( Telia Sonera )may acquire that stake.

Operators in Right bottom Quadrant:

These Operators have built economics of scale in few key markets ( Cash Cows). They are not in pressure either to sell or to acquire other operators. They are likely to be opportunistic in pursuing opportunities –

Selective Local Acquisition for SpectrumSoftbank’s intention of acquiring Willcom for its unused spectrum

Might Sell Off to Global OperatorTelecom Italia may be acquired by TelefonicaVerizon may be acquired by Vodafone ( from current 45% stake)

Expand Horizontally into Other business in their Operating Countries – WalmartizationChina Mobile Investment in Shanghai Pudong Bank

Operators in Left Bottom Quadrant

Majority of the operators are emerging market operators in this quadrant. Some incumbent western operators are also there .

The Operators in this quadrant will be under pressure to acquire , to get acquired or to pursue diversification.

Bharti is very aggressive and pursuing acquisition candidate – First MTN and now ZainReliance expanding Horizontally – Walmartization : Banking, Financial Services and InsuranceIdea is likely to be acquired either by their Minority stake holder Axiata or by some other groupAxiata either may pursue more acquisition or may get acquired by VodafoneSTC has investment in Maxis and might convert it to operating control

Meanwhile some Opportunistic operators might follow Private Equity Approach and play selective local or regional acquisition to increase their attractiveness and value for future acquisition. ( “Synergy less” acquisition and bidding for new licenses for building spectrum and licensing assets)Idea acquiring SpiceMaxis acquiring AircelEssar acquiring Warid Uganda, Congo

Telecom Operators as Walmart of Services

Telecom Operators have unique opportunity to become a one stop shop for digitized services – Media, Banking, Insurance, Health Care, Education, Information, Utilities for their subsribers or customers .

Telecom Operators will have advantage of “Economics of Subscribers” and “Economics of Access” by providing one stop shop for these services to Subscribers.

Already some experiment is happening and some Operators are entering into these seemingly unrelated businesses. They might utilize their telecom infrastructure (“ Economics of Access”) to provide these services to their subscribers (“ Economics of Subscribers")

How will this trend unfold and which Operators can become Walmart of Services” ?Typically Operators in bottom quadrants ( both left and right ) are experimenting with this

Education and Health Care never had economics of scale as they have to be delivered locally and didn’t had back office or operational infrastructure which could be consolidated across regions. Now with possibilities of Mobile Education and Mobile Health, the delivery need not be local; hence, they can have economics of scale at few locations. Telecom Operators can capitalize on this opportunity.

Utilities can transmit electricity without wires (wireless) and then Telecom Operators can be providers for utilities too…( That will take time… a decade or so… but possibilities are there )

Telecom Sector with more than hundreds of M&A , diversifications and new business models will be sector to watch in this decade. And emerging market operators will be at least equal if not more in their share of driving changes in Telecom Sector. Telecom World will not be the same again !!